Aussie Mostly Soft as Week Draws to a Close

Australian dollar is mostly softer as the week draws to a close. Aussie has been weakened this week by risk aversion and concerns about what’s happening in the eurozone. Also, recently, the news out of China has been somewhat disappointing, and that has been weighing on the Aussie as well, since the Chinese economy is a major support to the Australian economy.

Aussie is higher against the US dollar today, gaining as a measure of risk appetite returns to the markets. US stocks are showing signs of recovery as earnings news spurs bulls forward. Additionally, the high demand for sovereign debt in the eurozone (even though yields are a bit high) is helping to allay some fears for the 17-nation currency region.

Australian dollar is finding some support against currencies like the dollar and the yen today. However, Aussie is lower against the euro and the pound. The mixed performance is to be somewhat expected, though, as European currencies make a comeback. Against the dollar and the yen, the Aussie’s superior interest rate and high return potential is helping.

At 15:30 GMT AUD/USD is higher at 1.0354, up from the open at 1.0344. EUR/AUD is up to 1.2726 from the open at 1.2705. GBP/AUD is up to 1.5538 from the open at 1.5520. AUD/JPY is higher at 84.64, up from the open at 84.43.